Tobias Carlisle, founder of The Acquirer's Multiple, discusses value investing, the performance of his ETF ZIG, challenges of value investing in a growth-dominated market, his investment strategy focused on fundamental performance, the role of patience in investing, opportunities for value investing, insights from the Berkshire Hathaway annual meeting, and personal investment advice. A must-listen for value investing enthusiasts.
Value investing focuses on fundamental performance over price action, seeking undervalued opportunities in changing market conditions.
Patience and long-term perspective are crucial in value investing, requiring discipline to wait for intrinsic value to materialize.
Staying cool during market fluctuations and adhering to fundamental analysis can lead to substantial returns in value investing.
Deep dives
Navigating Bull Markets and Investment Trends
In bull markets, investors tend to follow what has been working well, such as investing in the S&P 500 as the top-performing asset class. However, it is essential to recognize that market behaviors can change, leading to shifts in investment trends. Understanding the dynamics of bull markets and the importance of monitoring performance trends can guide investment decisions.
Adapting Value Investment Strategies
Value investment strategies require adapting to changing market conditions. By focusing on fundamental analysis and financial statements, investors like Toby Carlisle seek undervalued opportunities. Recognizing the impact of factors like macroeconomic events and industry shifts, they aim to construct portfolios with quality, value, and growth potential.
The Challenge of Patience in Value Investing
Value investing demands patience and a long-term perspective. Despite lumpy returns and behavioral challenges, the key is to remain disciplined and wait for the intrinsic value of investments to materialize. Managing expectations and understanding the potential impact of market cycles are crucial aspects for both investors and fund managers in navigating the value investment landscape.
Investing Strategies and Portfolio Management
The podcast episode delves into the importance of focusing on fundamental performance rather than price action in investing. The speaker emphasizes the significance of staying cool and ignoring market fluctuations while concentrating on underlying fundamental growth. By highlighting an example with Dillard's retailer stock, the episode showcases how patience and adherence to fundamental analysis led to substantial returns.
Market Dynamics and Insights
The podcast touches on the challenges of market timing and the benefits of a steady, long-term investment approach. By discussing the shifts in annual returns and the strategy of quarterly rebalancing, the episode underscores the value of patience, survival through market downturns, and maintaining a disciplined investment process. The speaker's dedication to deep value investing and the emphasis on quality businesses demonstrate the importance of perseverance and consistency in achieving investment success.
In this episode, we delve into the world of value investing with Tobias Carlisle, the founder of The Acquirer's Multiple and author of the book 'The Acquirer's Multiple'. From his journey from a lawyer in Australia to a value funds manager in California, to his unique approach towards value investing, this conversation is a treasure trove of insights for anyone interested in the financial markets.
Topics Discussed
Tobias Carlisle's journey from a lawyer in Australia to a value funds manager in California
A discussion on the performance of Carlisle's ETF ZIG and its outperformance of S&P over the last three years
The challenges and rewards of being a value investor in a market dominated by growth investing
Insights into Carlisle's investment strategy, including his emphasis on fundamental performance over price action
The role of patience and behavioral fortitude in value investing
Carlisle's views on the future opportunities for value investing, particularly in the context of sector diversification
Reflections on the recent Berkshire Hathaway annual meeting and the lessons learned from Warren Buffett and Charlie Munger
Carlisle's personal investment mantra and his advice for navigating the ups and downs of the investing world
This episode is a must-listen for anyone interested in value investing. Tobias Carlisle's insights, drawn from his extensive experience and unique approach to investing, provide valuable strategies to navigate the financial markets. Whether you're a seasoned investor or just starting out, this conversation is sure to provide you with plenty of food for thought.
This is “ReSolve’s Riffs” – published on YouTube every Friday afternoon to debate the most relevant investment topics of the day, hosted by Adam Butler, Mike Philbrick and Rodrigo Gordillo of ReSolve Global* and Richard Laterman of ReSolve Asset Management.
*ReSolve Global refers to ReSolve Asset Management SEZC (Cayman) which is registered with the Commodity Futures Trading Commission as a commodity trading advisor and commodity pool operator. This registration is administered through the National Futures Association (“NFA”). Further, ReSolve Global is a registered person with the Cayman Islands Monetary Authority.
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